Table 3 computations for the pay performance gap.

For all practices {i = 1...I} and indicators {j = 1...J}:

Number of patients eligible for treatment before exceptions, N_ij

Number of patients receiving treatment, X_ij

Number of exceptions, E_ij

Exception reporting rate (proportion), E_ij/N_ij = e_ij

Actual quality performance score before exceptions, q_ij = X_ij/N_ij

Reported quality performance score after exceptions, q^R _ij = X_ij/N_ij - E_ij

Rearranging gives X_ij = q^R _ij * (N_ij - E_ij)

Therefore actual quality performance $\begin{array}{c}{\text{q}}_{\text{ij}}={\text{q}}_{\text{ij}}^{\text{R}}\ast ({\text{N}}_{\text{ij}}-{\text{E}}_{\text{ij}})/{\text{N}}_{\text{ij}}\\ ={\text{q}}_{\text{ij}}^{\text{R}}\ast (1-{\text{E}}_{\text{ij}}/{\text{N}}_{\text{ij}})\\ ={\text{q}}_{\text{ij}}^{\text{R}}\ast (1-{\text{e}}_{\text{ij}})\end{array}$

Pay score, p_ij = (actual pay/maximum pay) for practice i and indicator j

Pay-performance gap for practice i and indicator j, g_ij = p_ij - q_ij

Pay-performance gap for indicator j, g_j = ∑_i p_ij - q_ij

Pay-performance gap for practice i, g_i = ∑_j p_ij - q_ij